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DS pilots ship of state, unlucky 13 at Senate refreshment room on Mar. 20, 1952
(Excerpted from the Memoirs of a Cabinet Secretary by BP Peiris)
It is time to get back to D.S. It was early 1950. The Prime Minister was firm that the de facto communist Government in China should be recognized. Some of his colleagues disagreed, but in the end gave way to the Prime Minister’s wish.
There then arose the controversy over the moving of a section of the Supreme Court out of Hultsdorp because of the congestion there. The Minister of Justice informed the Cabinet that he had consulted the Chief Justice, Sir John Howard, the General Council of Advocates and the Law Society. Only the Chief Justice had been helpful. The Minister had personally inspected many sites and had decided on a site at Bambalapitiya. A majority of the Judges of the Supreme Court were in favour of this site.
He had accordingly ordered that steps be taken for the acquisition of the land. Acquisition proceedings had, however, to be stopped when the General Council of Advocates and the Law Society made certain representations. The Council of Advocates had asked for an interview with the Prime Minister and, at this interview, had put forward a rebuilding scheme which the Public Works Department had described as an architectural monstrosity.
Apart from this, the scheme could not be carried out as the building operations would disturb the work of the courts. No alternative accommodation for the court building was available. As a compromise and a gesture of goodwill, he was prepared to retain in Hultsdorp the Assize Courts as well as the Election Courts in addition to the District Courts, and remove to the new site only the Supreme Court in its Appellate jurisdiction. In the end, the proposal was abandoned and the site used for the erection of flats to ease the housing problem.
In February 1950, Jayah, Minister of Labour and Social Services, left the Cabinet to take up the appointment as High Commissioner for Ceylon in Pakistan. He was succeeded by M. D. Banda.
There was much agitation at this time that education should be free, and the Cabinet was compelled to consider the problem and decide on the policy to be adopted. They came to several important decisions after many days of deliberation.
It was agreed that no tuition fees should be levied in Government Primary, Post Primary and Training Schools, in Government Vocational Schools, Training Colleges and in the University, In Primary Schools, the medium of instruction was directed to be the mother tongue, but English should be taught throughout the primary course as a second language. In Post Primary Classes of Sinhalese and Tamil Schools, as regards the medium of instruction, there was to be no change; but where it was not possible to teach certain necessary subjects through their existing medium, English might be used for these subjects.
In standards VI, VII, and VIII of English Schools, Sinhalese and Tamil, for pupils whose parents are Sinhalese speaking and Tamil speaking, should be introduced subject by subject, if necessary, as the media of instruction, in three successive years, as soon as the Government was satisfied that there was a sufficiency of teachers and books for carrying on the work adequately. Children were to be compelled to attend school from the age of five to 14, subject to exemption by the Minister in suitable cases after the age 12, and the exemptions were to be as few as possible.
Schools were divided into two grades – primary and secondary. Children assigned to post primary practical classes and those assigned to vocational schools were permitted to continue their academic education on payment of fees, if their parents wished, but were not provided for in the Government Schools. Scholarships and bursaries were to be provided in the University and other Government institutions for higher education.
The next important matter that the Government had to consider was the Report of Dr Cumpston on the Medical and Public Health Organization. Vital decisions were reached which gave rise to much agitation and controversy many years afterwards and had to be reconsidered by later Cabinets. One of the most controversial decisions was that all private practice by departmental doctors should cease and that all services given to the public by government salaried and pensionable doctors should be free.
This decision could not be implemented immediately. The Minister was therefore requested to formulate a scheme which would lead ultimately to the complete abolition of private practice for government doctors. At the date of writing, a half-hearted and unsatisfactory scheme of channeling a doctor’s practice is in force.
In August 1950, the Cabinet approved the National Flag. A Committee had been appointed to consider and report on this matter over which there were divergent views. Some sections did not approve of the predominance given to the Lion Flag. Hindus and Muslims wanted themselves represented in the flag In the end, to please all sections, different colours were added, as stripes alongside the Lion Flag to represent the different communities in the country.
In spite of the efforts of the Cost of Living Committee the cost of living was rising further, and the Government was compelled to increase the dearness allowance, and to subsidize rice to the extent of five cents a measure from December 1, 1950.
D.S., as I said before, was an amazing man. He was a hard worker and had no fixed hours of work. He forgot that the Government offices closed on Saturdays at 1 p.m. He did not know that a particular day was a Public Holiday. On such a day, he would arrive at his office to find it closed and would inquire, after getting back to Temple Trees, why the office was not open.
One incident, in which I was involved, is typical of the man. It was a Saturday, and I went to the Senate Refreshment Room for an aperitif. There were three others there – Senator Colonel T. Y. Wright, Senator Sarath Wijesinghe, my classmate at the Royal College, and my friend E. V. R. Samarawickreme, Clerk to the Senate.
I was making my way to another table when Col. Wright said, “Come and join us, young man”. I had a few drinks with my eye on the time. Even when one o’clock came along, I did not feel too easy because I knew that D.S. was working in his office. At a quarter past two (Saturday afternoon) we were still in the Senate when the Prime Minister’s peon walked in and said that I was wanted.
The Prime Minister had a problem and wanted my advice. In the Constitution and the Parliamentary Elections Order in Council, reference had been made to ‘British subject’. The Prime Minister desired to have this altered to ‘Ceylon citizen’ as regards the Election Order in Council, and wanted to know whether, if the amendment was made in that Order, a corresponding amendment would have to be made in the Constitution Order.
His purpose was to restrict the Indian estate labour vote. His difficulty was that an amendment of the Constitution required a two-thirds majority in parliament, and he had not the requisite majority. I answered “Yes, Sir” without reference to either of the two Orders in Council. He called for somebody’s opinion, which his secretary Atukorale brought in, and proceeded to read it out to me. The opinion was to the effect that the Elections Order could be amended without a corresponding amendment having to be made in the Constitution Order.
I said bluntly that the opinion was wrong. He said that I had given an opinion without reference to any books, and that what he had just read was the opinion of a King’s Counsel who had wanted a week’s time to give it.
I told him that, with all respect to the learned King’s Counsel, I was still of the view that the opinion was incorrect. He asked me for my reasons, and I said, still without reference to the Order in Council, that it was because of three words in section so and so in the Constitution Order (I remember using the words “umbilical cord”) which connected the two Orders, the significance of which the learned King’s Counsel had probably missed.
I also advised that if he was proceeding with the amendments, the Constitution amendment should be introduced first because it required a two-thirds majority to become law. “What do I do when you lawyers disagree?” asked the Prime Minister, and I replied that the question ought to be referred to the Law Officers of the Crown. Later, that was done; and the Law Officers agreed with me.
At that time however, the Prime Minister did not accept my advice. He introduced the amendment to the Elections Order first and got it through. He then introduced the amendment to the Constitution Order and failed to get the required majority. The result – the Elections Order today refers to ‘Ceylon citizen’ and the Constitution Order to ‘British subject’.
On another day, I went to the Senate Refreshment Room with Alexis Roberts to find a long lunch table laid for about 60 persons, and on inquiry, was told that it was the Judicial Officer’s lunch, that the Prime Minister was Chief Guest, and that he was due at 12.50 p.m. We drew two chairs and ordered drinks. The time was about 12 noon. The Judges were in conference upstairs. The Prime Minister had mistaken the time and arrived in the Refreshment Room at twelve-thirty.
There was no other guest present and we saw him approaching our table; he joined us and I introduced my friend. The Prime Minister inquired whether he was any relation of the late Dr Emmanuel Roberts, a general medical practitioner whose name is still respected and revered throughout the Island. When he heard that Alexis was the doctor’s youngest son, he was very happy because he had known the doctor well.
They talked of old times. We finished our drink but could not leave, as it would have been discourteous to leave the Prime Minister alone. I therefore asked him whether he could give me permission to order another drink (during office hours) and he said “Certainly, certainly, don’t mind me.” We took leave of him when we saw the Judges coming down the stairs to the lunch room and he thanked us for having kept him company all that time.
D.S. could be firm at times, but he was always polite. I once heard him tell a Permanent Secretary “If you can’t do your job, get out.” His telephone rang one day when I was doing some work with him and someone wanted to speak to one of his clerks, but, by a mistake, had dialed the Prime Minister’s direct number. Patiently, he put his work aside, turned up the directory and gave the caller the correct number. Can you imagine the Office Assistant to the Petrol Controller, referred to earlier, behaving in this dignified manner?
The Government had now to take some positive steps to deal with the problem of the rising cost of living. Several measures were considered. As a first step, it was decided to take over the control and distribution of essential foodstuffs like rice, flour and sugar. This was, I believe, the beginning of what later turned out to be virtual monopoly vested in the Co-operative Wholesale Establishment over the import and distribution of the Island’s principal essential commodities.
Came 1952. On February 6, I was attending a funeral at Kanatte when I heard someone, whom I did not know, say that the King was dead. The news had been announced from Radio Ceylon. The Prime Minister was a patient in the Merchant’s Ward of the General Hospital. I left the funeral and hurried back home as I knew that there would have to be an emergency meeting of the Cabinet. I called on the Prime Minister at the hospital and was directed to summon the Ministers to meet in his hospital room at nine o’clock the next morning.
There is no fixed place of meeting for the Cabinet. It has, apart from the Cabinet Room, met in the Prime Minister’s bedroom at Temple Trees, at Kandawela, at the Senate, in the Prime Minister’s room at the House of Representatives, and the Lodge at Nuwara Eliya.
Next morning, all the Ministers were present at the General Hospital. In attendance, there were Basnayake, Attorney-General, Sir Kanthiah Vaithianathan, Permanent Secretary to the Ministry of Defence and External Affairs, Sir Ivor Jennings, Vice-Chancellor of the University, and the Clerks to the Senate and the House of Representatives.
On behalf of his colleagues and on his own behalf, the Prime Minister placed on record their sense of the sad loss suffered by the death of His Majesty George VI. He had already dispatched a message of sympathy from the Government of Ceylon. The Cabinet recognized the succession to the Throne and agreed that the following Proclamation should be issued:
Whereas by the decease of our late Sovereign Lord King George the Sixth, the Crown is by our laws solely and rightfully come to the High and Mighty Princess Elizabeth Alexandra Mary; We, the Governor-General, the Prime Minister and other Ministers of the Crown in Ceylon do now hereby, with one voice and consent of tongue and heart, publish and proclaim that the High and Mighty Princess Elizabeth Alexandra Mary is now by the death of our late Sovereign of happy memory, become our Sovereign Queen by the name and style of Elizabeth the Second, to whom her lieges do acknowledge all faith and constant obedience with hearty and humble affection.
On previous occasions, the Proclamation acknowledging a new Sovereign had been signed by the Governor and ‘Other gentlemen of Quality’. On this occasion, it was decided that it should be signed only by the members of the Cabinet. The Governor-General, Lord Soulbury exercised his right to head the proclamation with his signature.
The Proclamation was read from the steps of the House of Representatives on February 8. In recording the minutes of the meeting held at the hospital, I marked the attendance of the lawyer Ministers as being Queen’s Counsel, instead of King’s Counsel which they were the previous day, and asked Sir Ivor whether I was correct. He said, “Yes. See the Demise of the Crown Act.”
March 20, 1952, was Mr D.S. Senanayake’s last Cabinet meeting. On that day, after the meeting, he entertained the Ministers and the Secretaries to lunch in the Senate Refreshment Room. Some Ministers were absent and I pointed out that 13 were sitting to table. I was sent out to bring somebody, some extra person, to make the number 14, but everyone I met appeared to have had his lunch. And so, 13 of us sat down to lunch. Minister Nugawela did not like it at all and said so.
Next morning, while on horseback, the Prime Minister fell off his horse although he was a good horseman. He had apparently had a stroke. He passed away the next day. Her Majesty the Queen was one of the first persons to send a message of sympathy.
Ceylon had lost the Father of the Nation. His wise leadership gave us peace and prosperity. There were no communal differences and controversies in his time. He had Muslims and Hindus in his Cabinet. He was not out for cheap notoriety. There was nothing mean or common in his nature, and his qualities of sincerity, good faith, and love of his native land have generally been accepted by the country. I have attempted to draw a vignette. Some future historian or research worker must give us his biography.
J. L. F.’ writing in the Ceylon Observer of March 23, 1952, said:
“Mr Senanayake was not merely a Prime Minister of a country: he was a leader of men. It was this quality both inborn and matured by experience which gave our country stability when he piloted the ship of state. His was not the leadership buttressed by bayonets and concentration camps in a country’s hinterland. The people followed him, and even his political critics admired him because he was known to be just. And a country of different communities, different religions and different castes needs at the helm someone whom they can all trust as a just man.”
Sir Alan Rose, Acting Governor-General, said:
“During my seven years in this country I have had the opportunity and happiness of seeing Mr Senanayake at very close quarters and from a variety of aspects. Quite apart from his many personal kindnesses, his inflexible courage, his power of mind and his breadth of outlook have combined to create an impression of greatness which I shall always remember.”
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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